BS reported that emerging power companies JSW Energy and Sterlite Energy are believed to have deferred their public offering plans following the market slump.

The report said that JSW Energy is now planning to increase funds for capital expenditure through private placement of 5% stake to a US based private equity fund.

The report cited an executive as saying that "JSW Energy has suspended the IPO plan for the time being. We will wait for market conditions to improve before coming out with the public offering and the subsequent listing. The company has already filed the draft red herring prospectus which will not be pursued. At present, we are fully funded for the equity portion of power projects. Only one project is under implementation as of now a 2,400MW project in Orissa."

As per report, JSW is expected to increase over USD 500 million through private placement of the equity. A slew of private equity firms have approached the company for a stake. The company plans to announce the deal very soon.

Sterlite Energy, a Vedanta Group company plans to increase USD 1.6 billion loan for its Greenfield projects. Sterlite plans to increase USD 1.6 billion through a syndicated loan, which will part fund Sterlite Energy's projects here. A senior Sterlite executive said that the company has not formally talked about its IPO plan.

Mr Anil Agarwal chairman of Vedanta Group said that "We are planning a USD 1 billion IPO for Sterlite Energy in the next few months however it was too early to set a date for the IPO. I can't really give you a date but it will be in a few months time. Bankers and advisers are working on it."

JSW Energy is setting up power projects with cumulative capacity of 4,000 mw at an investment of INR 12,000 crore.

Sterlite plans to add 10,000 MW investing INR 40,000 crore in the process.